Property News · August 7, 2014

Tax trap fears grow after Osborne pensions shakeup


Data shows pensioners may pay £3.6bn more in tax after raiding pension pots as critics warn of ‘one-man mis-selling scandal’Pensioners stand to lose £3.6bn in additional tax payments from next April as concerns grow that the freedom from annuities unveiled by George Osborne as the centrepiece of the 2014 budget will create a new “mis-selling scandal”.In the budget, Osborne said he would “remove all remaining tax restrictions” and give pensioners “complete freedom to draw down as much or as little of their pension pot as they want, anytime they want”. But detailed figures released after the budget revealed that the new freedoms would be a tax trap for many pensioners, boosting Treasury coffers by an extra £320m in 2014-15, rising to £1.2bn by 2018-19. Further estimates published this week suggest that the additional tax take will shrink slightly to £810m in 2019-20. Continue reading…

Source : theguardian.com
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